- NUPRC says a new agency would duplicate oversight and add financial pressure to the Federal Government.
- The commission maintains that the PIA already provides a comprehensive oilfield decommissioning regulation framework.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has rejected the proposed bill to establish the National Commission for Decommissioning of Oil and Gas Installations (NC-DOGI). The regulator said the plan would weaken Nigeria’s oilfield decommissioning regulation system and contradict international best practices.
Director Emmanuel Macjaja represented the commission at a public hearing organised by the House Committee on Petroleum Resources (Upstream) in Abuja. He warned that creating another agency would duplicate functions and increase the government’s financial burden.
He explained that the Petroleum Industry Act (PIA) 2021 already provides a complete framework for decommissioning and abandonment. Under Sections 232 and 233, the NUPRC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) manage all aspects of planning, execution, and funding.
Macjaja said that forming a new agency would only confuse. “A separate commission will duplicate work and strain government finances,” he cautioned.
He added that decommissioning is part of the oilfield lifecycle, not a separate task. Petroleum regulators manage everything from licensing to shutdown in countries such as Norway, the United States, and the United Kingdom.
He said the PIA was designed to ensure clarity and stability in oilfield decommissioning regulation. Creating another agency would disrupt this structure and discourage investors.
The NUPRC also revealed that it has already implemented the Upstream Decommissioning and Abandonment Regulations 2023. These rules guide operators on fund estimation, escrow account management, and plan approvals. So far, the commission has approved more than 80 decommissioning and abandonment plans, including major NAOC, SPDC, TotalEnergies, and Equinor oil divestments.
Furthermore, the NUPRC warned that forming a new body could increase government liabilities. NNPC Ltd, which holds majority stakes in many joint ventures, already covers between 60 and 100 per cent of decommissioning costs.
Meanwhile, Committee Chairman Alhassan Doguwa said the hearing aimed to gather expert input, not to investigate the commission. He stressed that the House seeks reforms that align with national interests and global standards.
He noted that the bill touches on energy transition, environmental protection, and resource management. According to him, the National Assembly aims to balance economic growth with environmental sustainability as Nigeria moves towards cleaner energy.
In closing, the NUPRC reaffirmed its stand. Nigeria already has a strong oilfield decommissioning regulation framework under the PIA. The commission urged lawmakers to support existing institutions instead of creating overlapping agencies that may hinder progress.